Entries by BPM-D

Process Model Conversion at Technology Organisation

Case Study

Process Model Conversion at Technology Organisation

Project
Summary

In four months, the company has completed its transition from UPN to BPMN to strengthen its BPM journey, implementing an optimised process capability in the organisation – 1609 processes and 252 storyboards have been migrated, reviewed, and signed off, Signavio Process Manager, Governance system and Collaboration Hub have been set up and business analysts have been trained to support the new repository.

Organization
Background

The company in focus provides IT products and services in four service areas: digital infrastructure, hybrid cloud, workspaces for tomorrow and cybersecurity. Its offerings include physical data centers as well as their management, operation, and relocation.

BPM-D built a strategy for the systematic migration of the business models and storyboards to Signavio and set up a structure to store the processes in the platform.

Business
Challenge & Opportunity

The company wanted to conduct a digital transformation of their processes and make continuous improvements. They initiated this journey by implementing the SAFe Framework to their business processes and updating roles, responsibilities and different systems used in these processes. The key business challenge was to ensure that the global organization updated their business processes meticulously and were able to identify improvements to further streamline the processes. They thus identified the need for using a Process Management tool that allowed taking advantage of the leading process improvement features.

The existing process modelling software – Nimbus (UPN format), that the company was using to create and store its processes, was outdated, and didn’t provide a collaborative and accessible approach to process management.

After a careful tool evaluation, Signavio was identified as the most suitable tool to manage the company’s repository. NTT has initiated its transition to BPMN, and BPM-D has been asked to support the first phase of the migration of 2000 process models & 500 story-boards, with consulting support to setup and launch the process repository.

Our
Solution

BPM-D built a strategy for the systematic migration of the business models and storyboards to Signavio and set up a structure to store the processes in the platform.

  • Process Hierarchy and framework was set up on Signavio for efficient migration of business models.
  • BPM-D created a robot to migrate the UPN Modes into BPMN which helped migrate 50 models per day to Signavio.
  • Dictionary, which is a central object management repository in Signavio containing all the necessary attributes related to the business processes, was populated and attributes were linked to the relevant business models.

The initial step was to extract all processes from Nimbus as XML files and add them to One Drive. For each process, the robot extracts its data from the XML file into Excel – activity names, roles, descriptions, IT systems, attached documents, etc. and using this data, the robot fills out all required fields in Signavio for all activities and creates the BPMN. Then, if necessary, the flow of the BPMN is corrected by the BPM-D team and elements such as functional roles, activities and IT systems are linked to dictionary, intermediate links are also added manually. Finally, the BPMN is linked to the respective value chain and reviewed by the client. If any changes are needed, the BPM-D team corrects them and then publishes the model to the Collaboration Hub.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Efficiency Improvement through RPA at a Transport Infrastructure Developer

Case Study

Efficiency Improvement through RPA at a Transport Infrastructure Developer

Project
Summary

This fast discovery engagement analysed the ‘Invoice Matching’ process and identified pragmatic automation opportunities with annualised savings of over £400k and 50% FTE redeployment.

Organization
Background

The organisation generates ~70% of its revenue from transport infrastructure construction and urban development on a global scale. It develops mobility solutions to enhance economic competitiveness and strengthen social bonds by designing, building, and maintaining transport infrastructure and fostering urban development. The organisation also manages street lighting networks through various subsidiaries and joint ventures.

BPM-D conducted a fast Process Discovery to determine where the major bottleneck in the process of unreliable source data was. Focusing directly towards resolving issues and automating request workflows.

Business
Challenge & Opportunity

The leadership team identified the ‘Invoice Matching’ process as one that could possibly benefit from automation. However, they were in the early stages of understanding RPA and required

support in designing a solution that included automation interventions.

The Accounts Payable (AP) Team receives approximately 200k invoices per year via post, email or e-invoice in paper-based, PDF, or Electronic Data Interchange (EDI) formats. The process of matching and posting invoices to the General Ledger involves many manual tasks prone to human error resulting in late supplier payments, which subsequently impacted their ability to deliver core business operations. Overall, the process held a lot of potential opportunities for automation which would help reduce employee workload and increase efficiency.

The primary focus was initially what was described as an end-to-end process with various bottlenecks. Due to discrepancies originating from various stakeholders involved in the process, there was poor source data for the Accounts Payable Team to process which increased their workload considerably.

Additionally, the Accounts Payable Team was manually communicating across teams to resolve issues instead of maintaining a central database capturing contacts to send requests to. With multiple stakeholders, poorly managed internal databases and lack of definitive rules, information was not efficiently documented. Therefore, obtaining consistent Figures across the business for costs and savings proved challenging.

Our
Solution

  • As-Is processes in the overall invoice matching area were mapped and documented at a field-level of detail. Performance issues were logged in readiness for the subsequent improvement initiatives.
  • Processes were re-defined and potential automation interventions were evaluated by calculating the time and cost restitutions obtained by running process simulations.
  • Process optimisation and improvement actions were documented, and 5 automation interventions were shortlisted based on value additions made to the process.
  • Costed Business Case and Implementation Plan presented to client board – savings were calculated on the reduction in workload and increase in efficiency enabled by the automation interventions.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Process Mining to Drive Transformation at Police Service

Case Study

Process Mining to Drive Transformation at Police Service

Project
Summary

A UK-based police service wanted to improve response and case processing time for incidents. Together with BPM-D, they deployed process mining to analyse response data, identify bottlenecks/issues, and define potential initiatives which would improve how cases are managed.

Organization
Background

The police service in focus had an internal team dedicated to delivering Operational Excellence who recognised the value of process management. There was an established process modelling & repository management platform and they had been investigating the use of Process Mining technology to supplement this process capability. There was scope for improvement in their handling of a specific category of incidents, with potential inefficiencies in both response and case processing. The police service acknowledged this and looked to deliver this improvement, leveraging their internal process capability alongside both Subject Matter Expert and BPM-D consulting support.

BPM-D’s Rapid Process Improvement (RPI) methodology was used to define how the handling of incidents should be transformed by using a 7-step approach.

Business
Challenge & Opportunity

The Integrated Supply Chain function at the global technology company was implementing a new digital solution to assist with demand planning, supply planning, production planning, and the new S&OP processes.

With several ERPs and S&OP process maturity levels across business units from project-based items to physical containers to engine motors and parts, this company lagged capabilities to foresee Demand and effectively plan Supply and Production accordingly.

The implementation of the new digital solution to address the appropriate processes was estimated to save approximately $55M over five years, therefore fast and efficient actions were required.

This created a framework for prioritising improvements downstream and helped to focus analysis on the most critical areas of the process.

This police service uses a custom system for recording and managing incidents. This system creates event logs when used; these track what function the system has been used to perform and the time at which the function was executed. Further, rich data is also recorded which provides information such as the borough, user, and incident category, etc. The event logs and the rich attribute data for a 3-month period were extracted, anonymised, and then loaded into a process mining tool for analysis.

The subsequent analysis highlighted bottlenecks, trends, and potential areas for improvement. After validating the data interpretation with the System Owners, these insights were reviewed with process subject matter experts.

In the SME interviews, first the As-Is process was discussed to identify key, non-system driven tasks. Once there was agreement on the current processes, the data insights and SME pain points were discussed. This combination of quantitative and qualitative investigation generated a rich understanding of where transformation needed tobe delivered.

The As-Is landscape was validated through a workshop with a focused group of process stakeholders, fostering alignment and ensuring the interpretation was accurate.

Our
Solution

The Process Mining Factor:

Generate an As-Is Process

  • Process models were previously built through interviewing SMEs. This meant that they showed what an organisation thought it was doing. Process mining is built off of system extracts – the data does not lie. This builds a true representation of business processes, including repetition, failure points and bottlenecks.

Analysis by Segment

  • Process mining investigations can be filtered by any attribute – case category, region/team, time of incident, etc. This enables the identification of issues and trends specific to a focused segment of the organisation, allowing for focused improvement and/or benchmarking.

Track Compliance

  • By using system data, you have visibility of how your organisation functions. With a continuous data feed, you can identify potential non-compliant behaviour and correct it before it is an issue. By analysing historical data, long term trends can be found and corrected.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Establishing a Business Process Repository at a Public Authority

Case Study

Establishing a Business Process Repository at a Public Authority

Project
Summary

A global maritime company’s finance division found it increasingly difficult to manage controls. BPM-D implemented an integrated control management solution (BPM-D Application) which enabled users to record control execution while providing personalised dashboards and intelligent audit reporting.

Organization
Background

A governmental regulation authority was undertaking a digital transformation. As part of this, they realised they needed to understand how data was flowing across the organisation: where, when, and how was it having an impact.

BPM-D worked with the organisation to mobilise their process repository, leveraging the 5 pillars of good repository management as identified in the BPM-D Repository Management Framework.

Business
Challenge & Opportunity

They identified process as the lens through which to build the required data visibility. They had selected a process modelling and repository management tool, based on an affiliated organisation’s extensive tool selection research, but now needed to mobilise it through developing internal skills, setting up governance, and defining how to maximise their return on investment. They chose to partner with BPM-D to enable their process journey.

Our
Solution

BPM-D worked with the organisation to mobilise their process repository, leveraging the 5 pillars of good repository management as identified in the BPM-D Repository Management Framework.

  • Value – Usage Scenarios: At the core of any successful process initiative, there must be a clearly defined usage scenario whereby the work done, and assets delivered generate value. As such, the first step of the mobilisation was to define how the repository would be used to the benefit of the organisation.
  • Content: They recognised that across the organisation there were thousands of processes and it would not be pragmatic to model them in their entirety. As such, a value-driven approach to process discovery was deployed.
  • Format: Before this initiative, multiple sections of the business had recorded process information in various formats, with no overarching standards or methodology. This meant that there was no consistency between these teams/people, with no common understanding of the process data requirements or the model layouts used – everyone was talking process but doing so in different languages!
  • Governance: Consistency and control are key long-term success factors for a process repository because they ensure ongoing alignment between the process assets and the rest of the organisation – an effective governance approach satisfies both needs.
  • Tool/Usability: The organisation had already decided on a repository management tool, basing this choice on a detailed evaluation performed by an affiliate. BPM-D have previously, however, facilitated the evaluation of repository management tools to enable an informed and unbiased decision at other organisations.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Triple throughput in less than one year for a leading Health Research Company

Case Study

Triple throughput in less than one year for a leading Health Research Company

Project
Summary

Moving process capabilities to next performance level and increasing process transparency for a fragrance research company.

Organization
Background

A leading fragrance research company needed to improve its safety assessment throughput significantly in order to satisfy stakeholder demand. With a growing backlog of assessments, the organisation needed to increase the transparency of the existing end-to-end processes and improve communication to accelerate the completion of safety assessments.

“I’m very satisfied with the progress of this performance improvement initiative. The new level of transparency in the Safety Assessment Process helps us process data faster and make well-informed decisions on the safe use of fragrance materials.”

Dr. Jim Romine.

RIFM President

Business
Challenge & Opportunity

The safety assessment process has high complexity with varying lead times and external dependencies, which resulted in inefficiencies and a slow-moving process.

The existing operations, processes and performance:

  • Lacked transparency.
  • Had low process maturity.
  • Had many new hires.

All of which contributed to the low numbers of safety assessments completed per year.

Our
Solution

BPM-D’s rapid process improvement approach was applied at the organization to create the transparency necessary to identify process issues, define process improvements and develop a roadmap to transform the end-to-end assessment process.

Additionally, to move the process improvement forward, a process owner was assigned to manage and drive value across functional areas, new process performance metrics were implemented, and appropriate work packages were defined.

  • Step 1: Comprehensive assessment of current process challenges and improvement opportunities as related to people, process, technology.
  • Step 2: Documentation of all safety assessment processes to increase transparency and process knowledge.
  • Step 3: Development and implementation of new performance management systems — KPIs, metrics, processes, and prioritized work packages.
  • Step 4: Enhancement of more efficient safety assessment operation model, future-state processes and improvement roadmap.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Process Mining POC for Order to Invoice at a Technology and Services Provider

Case Study

Process Mining POC for Order to Invoice at a Technology and Services Provider

Project
Summary

Process Mining provides data-driven insight into how an organisation functions, creating visibility of how users interact with systems to perform their day to-day responsibilities. In just two weeks, a process mining platform was deployed and a Proof of Concept (POC) order-to-invoice investigation created. This provided data-driven insights which enabled a wave of improvements. Further, it introduced process mining to stakeholders from across the organisation, demonstrating its value and creating internal champions.

Organization
Background

A leading global technology and services provider focusing on services, network integration, security and data centres. It is headquartered in London and employs 40,000 people across 70+ countries, delivering services to more than 200 countries.

This POC project has highlighted key areas for improvement and has provided solid grounding for
further Process Mining work on other key system-based processes, with Senior Leadership buy-in.
The great reception received from the business users enabled the go-ahead to industrialise process
mining at the client.

Business
Challenge & Opportunity

Process harmonisation is a key pillar to their digital strategy because it allows them to build key digitalisation initiatives around how the company functions. To achieve this, a process framework and repository were established. This created a view of how the business operated based on people’s interpretations of process. The high degree of process variations and low visibility of process compliance and performance ignited the implementation of process mining.

In order to view accurate process flows and enable realtime analysis; Order to Invoice process data from their ERP and IT Services Management Systems were loaded into the Process Mining tool.

The Order to Cash process was chosen for the POC due to its varied cycle times and recognised revenue leakage. By mining and cleaning the data, we were able to perform an in-depth process analysis which created numerous opportunities, such as:

  • Able to evaluate and control business performance, set goals, and correlate process performance with key success factors.
  • Reduced employee requirements, it does not take time away from their day to manually collect data.
  • Quick bottleneck identification enables you to eradicate redundancies and clear out extraneous steps.
  • Enables conformance checks from your own business data. This ensures you know how the processes are executed and whether they are compliant.
  • Able to make comparisons between how your processes are working and how they should be working, which allows for rapid determination into the required actions to correct any variances.
  • Removes reliance on time-consuming, external personnel analysis by automatically analysing existing system process data.

Our
Solution

Process Mining POC Approach:

The process mining tool was chosen because of its strong integration features with the existing process application suite. The aim of the POC was to identify key trends, process performance and target areas for improvement. Investigations covering key KPIs for cycle time, rework and compliance were created. The project was carried out by completing the following key milestones:

  1. PMO: Define project team, timeline and setup relevant CIO catchup calls.
  2. KPI Scoping: identify critical KPIs to measure process performance and determine data requirements.
  3. Data Extraction: export the relevant data from one or more systems before finding and integrating the target data attribute fields.
  4. Data Clean Up: the ‘data dumps’ extracted from the system require reformatting to remove redundant data lines and to allow for successful integration for both cross system alignment and importation into the process mining tool.
  5. Process Monitoring: setup live E2E process monitoring with relevant KPIs.
  6. Standards: build standard templates and methods to conduct future Process Mining projects.
  7. Investigation Design: create investigations and dashboards for regular management and reporting.
  8. Project Summaries: summarise your findings from each investigation, build improvement initiatives with the business case identified.
  9. Present Findings: demonstrate the capabilities of tools by creating videos of the investigations.

BPM-D
Results

In just 2 weeks, BPM-D were able to: integrate client system data into the Process Mining tool, create four investigations for each of the key KPIs, identify the best and worst performing regions, analyse potential root causes, evaluate the insights and create an overall summary dashboard.

The following insights were discovered through the Process Mining investigations:

From
The Paper

Implementing Strategy-based Process Transformation Management for a Biotechnology Company

Case Study

Implementing Strategy-based Process Transformation Management for a Biotechnology Company

Project
Summary

Strategy-based direction and priorities of performance improvement, process management and related activities.

Organization
Background

The new CEO of a leading biologics organisation needed to align process improvement initiatives with the organisation’s strategy. The organisation grew rapidly and many of the processes are still executed manually, leading to inefficiencies and mistakes. They have started process management activities and have launched various initiatives, unfortunately these activities have not yet been executed at a desired speed.

A value-driven approach was applied to design and implement Business Process Management capabilities and processes that enabled the organisation to use resources where they provide the best value during improvement initiatives.

Business
Challenge & Opportunity

The organisation needs to scale up new emerging product units, stabilize revenue and profits for existing product units to ensure financial heath. Much of the work is still done manually as working processes have not been adjusted appropriately to fit the new business reality. There is increasing complexity throughout the overall business where functional silo thinking and working is still common.

The company used the BPM-D Application to identify which high impact processes to focus on and align initiatives with the related priorities. They evaluated existing projects regarding their impact on the strategy and identified which new initiatives to launch to achieve defined goals.

Our
Solution

A value-driven approach was applied to design and implement BPM capabilities and processes that enabled the organisation to use resources where they provide best value during improvement initiatives.

  • Define Overall Operating Model: Design the operating model to provide a top down holistic view of the whole organisation including each of its functions.
  • Targeting Value: Create a value-driver tree to align business priorities and goals. Key input to enable identification of high impact areas crucial for overall strategy execution.
  • Process Impact Assessment: Identify high impact low maturity process using a value-driver tree and a pragmatic prioritization approach.
  • Detailed Process Assessment: The analysis included cross-functional processes from high impact areas as identified in “Targeting Value”. The assessment shows specific improvement potentials, additionally where to simplify and automate processes.
  • Establish Accelerators for BPM: Identify methods and tools that streamline the execution and performance journey, leveraging the existing process management and business model architecture information.
  • Define Roadmap: Define future improvement opportunities in work packages. Define outcomes, value towards the overlaying goals, and a rough cost-benefit estimation.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Achieving Significant Savings in Procure-to-Pay at a Technology Company

Case Study

Achieving Significant Savings in Procure-to-Pay at a Technology Company

Project
Summary

Cost reduction of over $8M in Procure-to-Pay processes for the global technology company in less than one year.

Organization
Background

The technology company set-up a new business process management (BPM) department in an effort to support its enterprise-wide transformation initiatives. The key goals were reduction of cost and cycle time for target initiatives which included procure-to-pay, supply-chain planning and customer order management. Procure-to-pay was the first target initiative for the new BPM unit.

BPM-D enables effective alignment of the core BPM capability while leveraging processes to effectively identify and prioritize transformation initiatives to achieve immediate improvements and enable knowledge transfer to team members.

Business
Challenge & Opportunity

The technology company is a complex organization, with multiple locations, in various regions with countless business units and departments. Due to the complexity, enterprise-wide business transformation was already launched with limited movement. So, it was later decided to set up the new BPM unit to speed up progress and ultimately drive the transformations.

To effectively accelerate the process improvement for the various initiatives, new digital process tools were leveraged to connect stakeholders and project teams across different business units in different locations and countries.

Our
Solution

A pragmatic approach was applied for the analysis of the existing processes and design of the to-be process which reflected the identified improvement, process standardization and automation opportunities. BPM strategy and capabilities were developed in parallel to enable effective knowledge transfer and sustainability.

  • Process Improvement: Fast and pragmatic work with process models to identify improvement opportunities and related actions in including procure-to-pay.
  • Business Process Repository Set-up and Incremental Roll-out: Set up a business process repository (Signavio) — Create the repository content in a re-usable format for the different improvement projects to provide immediate value and transparency across project teams.
  • Systematic Knowledge Transfer: Systematic knowledge transfer and educational activities with face-to-face trainings combined with E-Learning components to facilitate and expedite enterprise-wide roll out.
  • Process Governance Organization: Define and implement simple process governance organization — collaboration model, roles and responsibilities, governance processes, and the integration of process and data governance.
  • BPM Playbook: Develop a practical BPM Playbook to sustain the BPM capabilities — key topics include methods and guidelines, repository management, governance, the approach to projects, the value realization, the process intelligence, and intelligent process automation.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Robotic Process Automation at a Council Service Provider

Case Study

Robotic Process Automation at a Council Service Provider

Project
Summary

To get RPA moving, this fast discovery engagement analysed the Licensing processes and identified practical automation opportunities with annualised savings of around £400k to be delivered by the end of the first year.

Organization
Background

The organisation is contracted by a number of UK County Council Authorities to coordinate and execute their Streetworks Permit, Notice and Licence operations. The initial scope was focused on the request, evaluate and verification tasks for one authority where they employed ~40 dedicated staff with a total process cost of approximately £4m pa.

We identified the performance issues and logged in readiness for the subsequent improvement initiatives, during a two-week span.

Business
Challenge & Opportunity

This department was facing issues with their process due to the sheer number of applications that meant some were not receiving the necessary scrutiny, potentially causing a loss of revenue and causing some applications to be approved in error. Overall, the processes were thus not very cost effective while the team was resource constrained. The leadership team identified the licensing process as one that could possibly benefit from automation but did not know where to start. Their initial assessment projected around a 10% improvement in process execution time.

The primary focus was initially what was described as three discrete process variants at varying stages of maturity, across four sites with changing levels of management autonomy. The various teams were working in silos and did not have an end-to-end or holistic view of their processes. With multiple stakeholders and a decentralised structure, knowledge was localised with individuals with a distinct lack of business decision-making rules and training materials.

Our
Solution

  • As-Is processes in the overall licence approval area were mapped and documented at a field-level of detail. Performance issues were logged in readiness for the subsequent improvement initiatives, during a two week span.
  • Discrete processes were redefined as one common core with ancillary administrative tasks. Potential for automation solutions was analysed via process simulations.
  • Process optimisation and improvement actions were documented; five automation solutions and numerous process enhancements across four work packages were identified.
  • Costed Business Case was presented to the board – savings were calculated on the reduction in execution time enabled by the automation interventions.
  • Detailed implementation plan that included the documentation of rules and procedures before testing, deploying the first bot to automate basic verification and providing full user training – a second phase would follow, deploying a second bot to automate more complex verification procedures.

BPM-D
Results

A compelling, fully costed business case that yielded the following benefits:

From
The Paper

Identifying & Defining Process Improvement Opportunities

Case Study

Identifying & Defining Process Improvement Opportunities at an international building materials and construction company

Project
Summary

A 6-week proof of value project was successfully completed at an international building materials and construction company. This project utilised BPM-D’s rapid process improvement approach to setup and gain insights using Signavio’s Process Intelligence Tool Suite. The results highlighted automation potentials, identified process bottlenecks and provided insights into the root causes of underperforming KPIs.

Organization
Background

A global leader in the building materials business, with 79,200 members operating in 30 countries. This organization supplies materials such as cement & asphalt whilst also producing construction accessories and architectural products.

The organization was able to establish 21 key performance indicators across it’s procure to pay process. These KPIs prompted areas which required a deep dive analysis both within procurement and accounts payable.

Business
Challenge & Process Mining Opportunity

The Procure to Pay process was chosen because it had a noticeably high average cycle time despite having significantly greater resourcing levels compared to the industry benchmark. Resource rebalancing was high on the senior board’s agenda; however, they did not know the root causes of the inefficiencies which were causing the high cycle times and resource costs.

Deploying process mining provided the company with several valuable opportunities. These included:

  • Process bottleneck identification.
  • Conformance checking against the ‘As-Is’ process.
  • Regional performance analysis which can be broken down to plant level.
  • Evaluation of rework root causes.
  • KPI monitoring for procurement and accounts payable.
  • Automation potentials to help reduce repetitive work (and associated errors), as well as incidences of non-compliant behaviour.
  • Ability to harness existing internal data to improve compliance-related decision making by highlighting and monitoring risk and compliance issues e.g. duplicated invoices.
  • Data-driven improvement plan which formed a valuable business case.

Our
Approach

The organization was able to establish 21 key performance indicators across it’s procure to pay process. These KPIs prompted areas which required a deep dive analysis both within procurement and accounts payable.

By using the process mining tool along with simulation, they generated the following key insights:

  • Calculated the three-way match failure rate as 28% and subsequently investigated the root cause of the failure: 82% of all 3-way match failures were caused by the Goods Receipt.
  • Investigated the cycle time impact of failed three-way matches: Unsuccessful 3-way matches had a P2P cycle time which was 22 days greater than successful 3-way matches.
  • Analysed the cycle time effect of After the Fact POs: 
    • Reduces the procurement average cycle time by 7 days.
    • Increases the accounts payable average cycle time by 11 days.
    • 85% of After the Fact POs involved rework.
  • Investigated delivery delays: 71% of the urgent POs have a delayed delivery instance.
  • Highlighted key cycle time sinks: 8% of POs take longer than 2 days to be approved.

Average cycle time increased by 17 days when the Goods Receipt was recorded after the invoice was created.

The streamlined procurement flow decreased the procurement cycle time by 16 days however the overall cycle time for P2P was the same because it created more rework in the accounts payable side of the process.

BPM-D
Results

Key Insights

The organization was able to establish 21 key performance indicators across it’s procure to pay process. These KPIs prompted areas which required a deep dive analysis both within procurement and accounts payable.

By using the process mining tool along with simulation, they generated the following key insights:

  1. Calculated the three-way match failure rate as 28% and subsequently investigated the root cause of the failure:
    • 82% of all 3-way match failures were caused by the Goods Receipt.
  2. Investigated the cycle time impact of failed three-way matches:
    • Unsuccessful 3-way matches had a P2P cycle time which was 22 days greater than successful 3-way matches.
  3. Analysed the cycle time effect of After the Fact POs:
    • Reduces the procurement average cycle time by 7 days
    • Increases the accounts payable average cycle time by 11 days
    • 85% of After the Fact POs involved rework.
  4. Investigated delivery delays:
    • 71% of the urgent POs have a delayed delivery instance
  5. Highlighted key cycle time sinks:
    • 8% of POs take longer than 2 days to be approved
    • Average cycle time increased by 17 days when the Goods Receipt was recorded after the invoice was created
    • The streamlined procurement flow decreased the procurement cycle time by 16 days however the overall cycle time for P2P was the same because it created more rework in the accounts payable side of the process.

 

Increased Visibility of Process Performance

The various tools within the Signavio suite worked together to optimize our approach and the outcome of the project. The Signavio Process Manager simulation tool was used to test and prove the business case for improvement initiatives. Incorporating cost, time and resource figures into the process allows the user to simulate an As-Is and a To-Be scenario. This removes uncertainty and adds real weight to business cases. To enable the organization to continuously monitor their KPI’s, we utilized the Signavio Hub. The Hub’s ‘Live Insights’ feature lets users stay updated on key metrics such as the average procure-to-pay cycle time. This seamlessly connected the process repository to the process mining dashboard using operational insight elements. 

From
The Paper